HOUSTON--(BUSINESS WIRE)--PROS Holdings, Inc., a leading provider of AI-powered SaaS pricing and selling solutions, today announced it has been named a Leader in the IDC MarketScape: Worldwide B2B Revenue and Profit Optimization Platforms 2025-2026 Vendor Assessment (doc # US52034524, December 2025). We believe this recognition builds on PROS strong reputation in the price management and optimization market, reinforcing its unique position as part of a unified commercial platform with advanced AI and real-t ...

Core Insights - Two stocks in the information technology sector are signaling potential warnings for momentum-focused investors as of Nov. 19, 2025 [1] Group 1: ChipMOS Technologies Inc - ChipMOS Technologies reported third-quarter earnings of 33 cents per share, an increase from 26 cents per share in the same period last year [6] - The stock of ChipMOS Technologies has appreciated approximately 39% over the past month, reaching a 52-week high of $30.98 [6] - The Relative Strength Index (RSI) for ChipMOS Technologies is at 72.2, indicating it is considered overbought [6] - The stock price of ChipMOS Technologies increased by 3.3% to close at $29.50 [6] - ChipMOS Technologies has an Edge Stock Rating of 88.06 for momentum and 93.28 for value [6] Group 2: PROS Holdings - PROS Holdings reported better-than-expected quarterly results on Oct. 27 [6] - The stock of PROS Holdings has gained around 28% over the past six months, with a 52-week high of $29.84 [6] - The RSI for PROS Holdings is at 70.5, also indicating it is considered overbought [6] - The stock price of PROS Holdings fell by 0.3% to close at $23.05 [6]

Core Insights - PROS Holdings, Inc. provides software solutions aimed at optimizing sales and shopping processes in various industries, including travel, automotive, and healthcare [1] - The consensus price target for PRO has decreased from $28.71 to $23.25, while Bank of America Securities analyst Victor Cheng has set a higher target of $39, indicating a mixed outlook [2][6] - The company reported an 86% increase in earnings per share (EPS) and an 8% growth in revenue for the second quarter, with subscription revenue growing by 12% [3][6] - Adjusted EBITDA rose by 42% year-over-year, and the company anticipates strong free cash flow generation in the latter half of the year, supported by AI-driven CPQ market trends [4][6] - The Q2 earnings conference call highlighted the positive financial results and strategic initiatives, contributing to a favorable price target from Bank of America Securities [5] Financial Performance - PROS Holdings experienced an 86% increase in EPS and an 8% growth in revenue for Q2 [3][6] - Subscription revenue grew by 12%, exceeding management's guidance [3] - Adjusted EBITDA increased by 42% year-over-year, indicating strong operating leverage [4] Market Outlook - The consensus price target for PRO has decreased, reflecting a cautious outlook, while a higher target from Bank of America suggests potential optimism [2][6] - Anticipation of robust free cash flow generation and solid double-digit subscription revenue growth is expected due to favorable industry conditions [4][6]

Core Insights - Pros Holdings (PRO) reported quarterly earnings of $0.22 per share, exceeding the Zacks Consensus Estimate of $0.17 per share, and up from $0.14 per share a year ago, representing an earnings surprise of +29.41% [1] - The company achieved revenues of $91.68 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 0.56% and increasing from $82.7 million year-over-year [2] - Pros Holdings has outperformed consensus EPS estimates three times over the last four quarters and has topped revenue estimates four times in the same period [2] Financial Performance - The earnings surprise of +29.41% for the recent quarter follows a previous surprise of +85.71% when the company reported earnings of $0.13 per share against an expectation of $0.07 [1] - The current consensus EPS estimate for the upcoming quarter is $0.23, with expected revenues of $94.87 million, and for the current fiscal year, the estimate is $0.66 on revenues of $361.08 million [7] Market Position - Pros Holdings shares have increased approximately 4.9% since the beginning of the year, while the S&P 500 has gained 15.5%, indicating underperformance relative to the broader market [3] - The Zacks Industry Rank places the Computer - Software sector in the top 31% of over 250 Zacks industries, suggesting a favorable outlook for companies within this sector [8] Future Outlook - The sustainability of the stock's price movement will largely depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] - The estimate revisions trend for Pros Holdings was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6]

Revenue Growth - Subscription revenue increased by 13% and 12% for the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024[84]. - Total revenue rose by 11% and 9% for the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024[84]. - Recurring revenue accounted for 85% of total revenue for the three and nine months ended September 30, 2025[85]. Profitability Metrics - Subscription gross margin improved to 80% and 79% for the three and nine months ended September 30, 2025, respectively, compared to 78% for the same periods in 2024[86]. - Total gross margin increased to 69% and 68% for the three and nine months ended September 30, 2025, respectively, compared to 66% and 65% for the same periods in 2024[86]. Operating Performance - Cash provided by operating activities was $15.8 million for the nine months ended September 30, 2025, up from $3.4 million for the same period in 2024[87]. - Total operating expenses for the three months ended September 30, 2025, were $66.0 million, an increase of 21% compared to $54.4 million in 2024[102]. - Selling and marketing expenses increased by $2.4 million (12%) to $22.5 million for the three months ended September 30, 2025, primarily due to higher employee-related costs[102]. - Research and development expenses rose by $2.0 million (9%) to $23.0 million for the three months ended September 30, 2025, driven by increased employee-related costs[104]. - General and administrative expenses increased by $7.3 million (55%) to $20.5 million for the three months ended September 30, 2025, mainly due to higher noncash share-based compensation[106]. Cash Flow and Financial Position - Net cash provided by operating activities for the nine months ended September 30, 2025, was $15.8 million, a significant improvement from $3.4 million in 2024[115]. - Net cash provided by financing activities for the nine months ended September 30, 2025, was $13.0 million, primarily due to $50.0 million from the issuance of 2030 Notes[118]. - As of September 30, 2025, the company had $188.4 million in cash and cash equivalents, an increase from $162.0 million at December 31, 2024[112]. - The company reported a net change in cash, cash equivalents, and restricted cash of $26.4 million for the nine months ended September 30, 2025, compared to a decrease of $28.2 million in 2024[115]. Other Significant Events - On September 22, 2025, the company entered into a Merger Agreement to be acquired by Thoma Bravo, L.P., with a per share price of $23.25[88]. - The Merger is expected to close in the fourth quarter of 2025, pending shareholder and regulatory approvals[89]. - Maintenance and support revenue decreased by 37% for the three months ended September 30, 2025, primarily due to customer maintenance churn[94]. - Services revenue increased by 11% for the three months ended September 30, 2025, driven by higher billable utilization of the professional services organization[95]. - Other income, net increased by $7.0 million (213%) to $10.4 million for the nine months ended September 30, 2025, mainly due to a $4.2 million gain on debt extinguishment[108]. Taxation - The effective tax rate for the three months ended September 30, 2025, was (13)%, compared to 47% in 2024[110].

Financial Performance - Total revenue for Q3 2025 was $91.7 million, an increase of 11% year-over-year from $82.7 million in Q3 2024[3] - Subscription revenue grew by 13% year-over-year to $76.0 million in Q3 2025, up from $67.1 million in Q3 2024[6] - Gross profit increased by 16% year-over-year to $63.1 million, with a total gross margin of 69%, up approximately 300 basis points from the previous year[6] - The company reported a net loss of $4.2 million in Q3 2025, compared to a net income of $0.2 million in Q3 2024[3] - Adjusted EBITDA for Q3 2025 was $15.0 million, compared to $9.3 million in Q3 2024, reflecting a year-over-year increase of 61%[3] - Total revenue for the three months ended September 30, 2025, was $91.676 million, a 10.4% increase from $82.702 million in the same period of 2024[29] - Subscription revenue for the nine months ended September 30, 2025, reached $220.169 million, up 11.8% from $197.017 million in 2024[29] - Gross profit for the three months ended September 30, 2025, was $63.137 million, compared to $54.404 million in 2024, reflecting a gross margin improvement[29] - Net loss for the three months ended September 30, 2025, was $4.247 million, compared to a net income of $0.235 million in the same period of 2024[29] - Non-GAAP gross profit for Q3 2025 increased by 15% to $64,881,000 from $56,319,000 in Q3 2024[33] - Non-GAAP income from operations for the nine months ended September 30, 2025, rose by 73% to $28,458,000 compared to $16,439,000 in the same period of 2024[33] - Non-GAAP net income for Q3 2025 was $10,413,000, a 59% increase from $6,557,000 in Q3 2024[33] - Non-GAAP subscription gross profit for the nine months ended September 30, 2025, was $177,474,000, reflecting a 13% increase compared to $156,689,000 in the same period of 2024[39] - Free cash flow for Q3 2025 was $11.5 million, significantly up from $1.4 million in Q3 2024[3] - Free cash flow for the nine months ended September 30, 2025, was $15,815,000, significantly higher than $2,643,000 in the same period of 2024[37] Assets and Liabilities - Total current assets increased to $275.752 million as of September 30, 2025, from $239.116 million at the end of 2024, representing a 15.3% growth[27] - Total liabilities rose to $521.107 million as of September 30, 2025, compared to $488.605 million at the end of 2024, indicating a 6.6% increase[27] - The company reported a cash and cash equivalents balance of $188.404 million as of September 30, 2025, up from $161.983 million at the end of 2024[27] - The company’s accumulated deficit increased to $677.419 million as of September 30, 2025, from $667.727 million at the end of 2024[27] Operating Expenses - Operating expenses for the three months ended September 30, 2025, totaled $66.003 million, compared to $54.373 million in the same period of 2024, reflecting increased investment in R&D and marketing[29] - Share-based compensation for Q3 2025 was $13,799,000, compared to $7,271,000 in Q3 2024, reflecting a 90% increase[33] - Share-based compensation increased to $13,799,000 in Q3 2025 from $7,271,000 in Q3 2024, marking an increase of 89%[37] - Transaction costs for Q3 2025 were $2,258,000, while there were no transaction costs reported in Q3 2024[37] - GAAP (loss) income from operations for Q3 2025 was $(2,866,000), a decline from $31,000 in Q3 2024[37] - Amortization of acquisition-related intangibles decreased to $956,000 in Q3 2025 from $1,074,000 in Q3 2024[37] Strategic Initiatives - PROS Holdings, Inc. announced a pending acquisition by Thoma Bravo L.P. valued at approximately $1.4 billion, or $23.25 per share, representing a premium of about 53.2%[4] - The company will not host a Q3 earnings conference call and has suspended financial guidance due to the pending acquisition[5] - The company has filed a preliminary proxy statement with the SEC on October 22, 2025, regarding a proposed transaction, indicating ongoing strategic initiatives[22] Market Presence - The company welcomed new customers including Bleckmann and Kraft Heinz, and expanded adoption within existing customers like Adobe and American Airlines[11] - PROS achieved the highest ranking in G2's Fall 2025 Enterprise Grid for Pricing Software, highlighting its market presence and product value[11]

Core Insights - PROS Holdings, Inc. has launched its Smart Price Optimization and Management solution on the SAP Store, enhancing its visibility and accessibility to customers [1] - The solution integrates with SAP S/4HANA Cloud and SAP Business Technology Platform, providing AI-driven pricing insights for real-time omnichannel commerce [1] Company Overview - PROS Holdings, Inc. is recognized as a leading provider of AI-powered SaaS pricing and selling solutions [1] - The company focuses on delivering advanced pricing solutions that leverage artificial intelligence to optimize pricing strategies [1] Industry Context - The integration of PROS solutions with SAP platforms signifies a growing trend in the industry towards utilizing AI for pricing optimization [1] - The availability of PROS offerings on the SAP Store reflects the increasing demand for intelligent pricing solutions in the market [1]

Core Insights - Conga has announced a binding preliminary agreement to acquire the B2B business of PROS Holdings, Inc. from investment funds affiliated with Thoma Bravo [1] Company Overview - Conga is recognized as a leader in AI-powered solutions for configure, price, quote (CPQ), contract lifecycle management (CLM), and document automation [1] Acquisition Details - The acquisition is expected to be finalized with a definitive agreement in connection with the closing of the transaction [1]

Core Insights - Thoma Bravo plans to accelerate PROS' travel segment as a standalone business and integrate PROS' B2B segment with Conga following the acquisition [1][2] - The acquisition is expected to close in Q4 2025, with PROS shareholders receiving $23.25 per share, representing a premium of approximately 41.7% over the closing price prior to the announcement [3] Company Overview - PROS Holdings, Inc. is a leading provider of AI-powered SaaS pricing and selling solutions, focusing on optimizing omnichannel shopping and selling experiences [6] - Conga is a market leader in Revenue Lifecycle Management, providing solutions for configure, price, quote, contract lifecycle management, and document automation [7][8] - Thoma Bravo is a major software-focused investment firm with approximately $181 billion in assets under management as of June 30, 2025 [4] Strategic Plans - Thoma Bravo aims to leverage its operational experience and software expertise to enhance PROS' market-leading AI offerings in the travel sector [2] - The combination of PROS' B2B business with Conga is expected to create a more powerful solution portfolio, enhancing customer value across commercial operations [2][3] - The travel business will receive additional investment for innovation, aiming to strengthen PROS' position in the airline and travel market [2]

Group 1 - Class Action Attorney Juan Monteverde with Monteverde & Associates PC is investigating PROS Holdings, Inc. related to its sale to Thoma Bravo, where PROS shareholders will receive $23.25 in cash per share [1] - Monteverde & Associates PC is recognized as a Top 50 Firm in the 2024 ISS Securities Class Action Services Report and has recovered millions of dollars for shareholders [1][2] - The firm operates from the Empire State Building in New York City and has a successful track record in trial and appellate courts, including the U.S. Supreme Court [2] Group 2 - The investigation into PROS Holdings, Inc. raises questions about the fairness of the proposed transaction [1] - The firm offers free consultations for shareholders who have concerns regarding the transaction [3]